How do RHEL committed use discounts work?
RHEL CUDs are project- and region-specific. That means you will need to purchase them in the same region and project as the instances consuming these subscriptions. After you make a purchase, discounts automatically apply to any running virtual machine (VM) instances within a selected project in the specified region. If you have multiple projects under the same billing account, commitments can also be shared across projects by turning on billing account sharing.
When commitments expire, your running VMs continue to run at on-demand rates. It is important to note that after you purchase a commitment, you cannot edit or cancel it. You must pay the agreed-upon monthly amount for the duration of the commitment. Refer to Purchasing commitments for licenses for more information.
How much can I save with RHEL committed use discounts?
You can save as much as 20% on one-year commitments compared to the current on-demand prices. However, it is important to remember that you will be charged the monthly subscription fees, even if your actual RHEL usage is lower. Therefore, to maximize the discounts you can receive, we recommend purchasing CUDs for steady and predictable workloads. Here is a helpful comparison between the maximum discounts possible versus their relative on-demand prices:
Based on our research, CUDs are a good fit for many Red Hat Enterprise Linux VMs, the majority of which run 24/7 workloads. When evaluating whether they are right for you, consider the following: Based on list prices for a one-year term, Red Hat Enterprise Linux CUDs can help you save on subscription costs if you utilize a Red Hat Enterprise Linux instance for ~80% or more of the time within the one-year CUD term.
Source Credit: https://cloud.google.com/blog/products/compute/get-committed-use-discounts-for-rhel/
